Goods And Services Tax In India:A Long-Term Trend And Growth Analysis

Abstract

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. This tax reform has been subjected to a diagnostic test for its revenue buoyancy, legislation, administration and compliance, revenue growth, efficiency, uniformity, and balancing federal structure after six years of implementation.  The objective of this paper is to evaluate the design, structure, and implementation of GST in India and to contrast it with the practices of various international economies. The design of India's GST was informed by the best practices and experiences of numerous countries that have effectively implemented a VAT or GST system. The paper also analysed the long term trends and growth of the gross domestic GST revenue of selected states in India for the period 2012-2023. The study used the descriptive statistics and regression analysis. The annual linear trend as well as growth rate in the behaviour of included time series variable such as Gross domestic GST is estimated for the selected states with the help of regression analysis.  The results have an impact on the relationship between the central and state governments, as well as the impact of GST revenue collection on state finances through the central government's allocation of fiscal resources. It requires a period of time for the benefits of any new reform to be recognised and assimilated.